The crypto industry is continually gaining momentum and is being recognized by regulators across the globe. As such, the European Union (EU) is reportedly planning to merge cryptocurrencies and blockchain technology in its main processes by 2024 to promote greater use of digital finance.
According to some internal documents referred to by Reuters, the EU has laid out plans to incorporate these next-gen technologies and wants a rapid shift to “instant” payments despite the fact that 78% of payments in the eurozone are made with fiat money.
In the next four years, the regulators aim to better define regulations that will see cryptocurrencies and blockchain tech being used for international remittance. The documents note:
“By 2024, the EU should put in place a comprehensive framework enabling the uptake of distributed ledger technology (DLT) and crypto-assets in the financial sector […] It should also address the risks associated with these technologies.”
The EU wants instant payments to become more common especially in a time where the COVID-19 pandemic has fuelled cashless payments.
Amongst other targets, the commission also wants to deploy blockchain technology to make data sharing within the financial sector more streamline to encourage competition and result in the creation of a wide variety of services, all the while upholding the EU’s principle of “same risk, same rules, same regulation.”
“By 2024, the principle of passporting and a one-stop-shop licensing should apply in all areas which hold strong potential for digital finance,” the documents noted. By 2021, instant transactions avenues are expected to be the “new normal.”
The Commission will assess the impact of charges levied on consumers for instant payments and would require that they are no higher than those for regular credit transfers to be able to, Reuters added.
The report added that these new rules would be in place within the four years as soon as the anti-money laundering and identity checks have been completed.
As previously reported by The Daily Chain, just a week before this, a 167-page draft document of the EU commission’s digital assets regulation strategy was leaked online. Per the leak, the commission intends to develop a sound legal framework that clearly defines all crypto-assets’ regulatory treatment.